Markup Calculator
Calculate markup percentage, selling price, profit, and margin from product cost. Free small business pricing calculator with formula, examples, and practical use cases.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
Markup = (Selling price - Cost) / Cost x 100
If cost is $50 and selling price is $80, profit is $30, markup is 60%, and margin is 37.5%.
Methodology & assumptions
Last updated: 2026-06-10Calculation method
Derives markup, profit, and margin from cost and selling price. Markup is calculated against cost; margin is calculated against selling price. Assumes single-item or single-order scope.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Does not consider demand elasticity, competitor pricing, or volume discounts. Best used as a starting point for pricing decisions.
Input definitions
- Cost: Your cost before markup.
- Selling price: The price you charge.
Frequently asked questions
What is markup?+
Markup is the percentage added to cost to reach a selling price. It is calculated against cost, not revenue.
Why is markup higher than margin?+
Markup uses cost as the denominator, while margin uses selling price. That makes markup percentages look larger for the same sale.
How do I set a selling price from markup?+
Multiply cost by 1 plus your markup percentage. For example, $50 with 60% markup becomes $80.
Is a higher markup always better?+
Not always. Pricing still depends on demand, competition, costs, and whether customers accept the final price.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.